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CORRECTED TO POST #18
Similar to what I did for the last five years, here is a list of important “trigger” income levels for 2025.
Numbers are actual AGI/MAGI (i.e. - before standard or itemized deductions) unless indicated as Taxable Income by an asterisk * which means you can add $30,000 MFJ/$15,000 single if you use the standard deduction (+ another $1600 per person over 65 or blind if MFJ/ $2000 if over 65 or blind single). Note also that MAGI and AGI are often not the same in different sections of the tax code. If you are close to one of the limits, ensure you know what is and is not included in income for that particular limit. Here is a discussion where the AGI/MAGI distinction was crucial and cost someone $15k.https://www.early-retirement.org/fo...rdable-care-act-plans-115682.html#post2844864
Modified Adjusted Gross Income - Bogleheads has links to ten different MAGI calculations that may prove helpful (Thanks to SevenUp for the link).
I have put social security taxation levels in a separate post The important "trigger" income levels 2021, because it is a little complicated (not too bad) and highly dependent on exactly how much social security you receive in comparison to your total income. (This links to the 2021 thread, Post #2).
This is based on current law; there may be changes. As with the last five years, this is a collaborative effort, so if you have corrections or additions, please post them here and I will adjust this first post as necessary. I have included updated references at the bottom of the post. If you have a change or addition, it would be helpful to link a reference for it.
Link to 2024 thread is here Some important "trigger" income levels for 2024
Income level/effect (as of 1/1/2025) This is for Married Filing Jointly. Numbers for single taxpayers are listed separately below.
$20,440 -- 100% of FPL (Household of 2, Lower 48) -- minimum income for ACA subsidy in non-Medicaid expansion states (see reference **).
$23,850* - 12% marginal tax bracket for ordinary income
$28,207 -- 138% of FPL (Household of 2, Lower 48) -- minimum income for ACA subsidy in Medicaid expansion states (see reference**).
$46,800 -- Maximum two people collecting Social Security prior to FRA can earn ($23,400 each) in W-2 income before Social Security is reduced
$47,501 – Savers Credit drops from 50% to 20%
$51,001 – Savers Credit drops from 20% to 10%
$79,001 – Savers Credit eliminated
$81,760 - 400% FPL -- ACA subsidy reduced to the point where premium can be 8.5 % of income (Household of two, Lower 48)(note that ACA subsidy levels are based on the prior year’s poverty levels)
$96,701* - Long term capital gains taxed at 15%
$96,951 * - 22% marginal tax bracket for ordinary income.
$126,001 - Begin limiting traditional IRA deduction amounts (if you have a retirement plan at work)
$146,001 - No traditional IRA deductions allowed (if you have a retirement plan at work)
$160,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$170,001 - Student loan interest deduction (up to $2500) phaseout begins
$180,001 - AOTC/LLC are eliminated
$200,001 - Student loan interest deduction ends
$206,701* - 24% tax bracket
$212,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2023 income)
$236,001 - Begin limiting Roth contribution amounts
$246,001 - No Roth contributions allowed (consider backdoor Roth)
$250,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$250,001 - WAGE/SELF EMPLOYMENT INCOME - Additional 0.9% Medicare tax.
$266,001 - IRMAA level 2 surcharge
$300,000 - Termination of electric vehicle purchase tax credits
$334,001 - IRMAA level 3
$383,900 - Begin phaseout of Qualified Business Income (QBI) deduction
$394,601* - 32% tax bracket
$400,001 - IRMAA level 4
$483,900 - QBI deduction eliminated.
$501,051* - 35% tax bracket
$600,051* - 20% long term capital gains rate
$751,601* - 37% tax bracket
$750,001 – IRMAA level 5
Income level/effect (as of 1/1/2025) This is for Single Filers vv. Numbers for Married Filing Jointly are listed separately above ^^.
$11,926* - 12% marginal tax bracket for ordinary income
$15,060 -- 100% of FPL (Household of 1, Lower 48) -- minimum income for ACA subsidy in non-Medicaid expansion states (see reference**).
$20,783 -- 138% of FPL (Household of 1, Lower 48) -- minimum income for ACA subsidy in Medicaid expansion states (see reference**).
$23,400 - Maximum a single person collecting Social Security prior to FRA can earn in W-2 income before Social Security is reduced
$23,751 – Savers Credit drops from 50% to 20%
$25,501– Savers Credit drops from 20% to 10%
$39,501 – Savers Credit eliminated
$48,351* - Long term capital gains taxed at 15%
$48,476* - 22% marginal tax bracket for ordinary income.
$60,240 - 400% FPL -- ACA subsidy reduced to the point where premium can be 8.5% of income (household of one, Lower 48)
$79,001 - Begin limiting traditional IRA deduction amounts. (if you have a retirement plan at work)
$85,001 - Student loan interest deduction (up to $2500) phaseout begins
$80,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$89,001 - No traditional IRA deductions allowed. (if you have a retirement plan at work)
$90,001 - AOTC/LLC are eliminated
$100,000 - Student loan interest deduction ends.
$103,351* - 24% tax bracket
$106,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2023 income)
$133,001- IRMAA level 2 surcharge
$150,001 - Begin limiting Roth contribution amounts
$150,000 - Termination of electric vehicle purchase tax credits
$165,001 - No Roth contributions allowed (consider backdoor Roth)
$167,001 - IRMAA level 3 surcharge.
$191,950 - Begin phaseout of Qualified Business Income (QBI) deduction
$197,301* - 32% tax bracket
$200,001 - IRMAA level 4
$200,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$200,001 - WAGE/SELF EMPLOYMENT INCOME - Additional 0.9% Medicare tax
$241,950 - QBI deduction eliminated.
$250,526* - 35% tax bracket
$533,401* - 20% long term capital gains rate
$500,001 - IRMAA level 5
$626,351* - 37% tax bracket
References:
IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service
https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
2025 Medicare Parts A & B Premiums and Deductibles | CMS
401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000 | Internal Revenue Service
https://www.nerdwallet.com/article/taxes/can-you-take-the-savers-credit#:~:text=2025%20saver's%20credit%20limits%20(taxes,All%20other%20filing%20statuses%3A%20%2439%2C500
https://www.eitc.irs.gov/other-refu...e-education-credits/compare-education-credits
Questions and Answers on the Net Investment Income Tax | Internal Revenue Service
Explaining Health Care Reform: Questions About Health Insurance Subsidies | KFF
**https://www.kff.org/medicaid/issue-...medicaid-expansion-decisions-interactive-map/ (Medicaid expansion map. These could change. Research it.)
2024 Poverty Guidelines Computations
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
Topic no. 751, Social Security and Medicare withholding rates | Internal Revenue Service
https://www.irs.gov/pub/irs-pdf/f8959.pdf
https://www.ssa.gov/news/press/factsheets/colafacts2025.pdf
www.irs.gov
Similar to what I did for the last five years, here is a list of important “trigger” income levels for 2025.
Numbers are actual AGI/MAGI (i.e. - before standard or itemized deductions) unless indicated as Taxable Income by an asterisk * which means you can add $30,000 MFJ/$15,000 single if you use the standard deduction (+ another $1600 per person over 65 or blind if MFJ/ $2000 if over 65 or blind single). Note also that MAGI and AGI are often not the same in different sections of the tax code. If you are close to one of the limits, ensure you know what is and is not included in income for that particular limit. Here is a discussion where the AGI/MAGI distinction was crucial and cost someone $15k.https://www.early-retirement.org/fo...rdable-care-act-plans-115682.html#post2844864
Modified Adjusted Gross Income - Bogleheads has links to ten different MAGI calculations that may prove helpful (Thanks to SevenUp for the link).
I have put social security taxation levels in a separate post The important "trigger" income levels 2021, because it is a little complicated (not too bad) and highly dependent on exactly how much social security you receive in comparison to your total income. (This links to the 2021 thread, Post #2).
This is based on current law; there may be changes. As with the last five years, this is a collaborative effort, so if you have corrections or additions, please post them here and I will adjust this first post as necessary. I have included updated references at the bottom of the post. If you have a change or addition, it would be helpful to link a reference for it.
Link to 2024 thread is here Some important "trigger" income levels for 2024
Income level/effect (as of 1/1/2025) This is for Married Filing Jointly. Numbers for single taxpayers are listed separately below.
$20,440 -- 100% of FPL (Household of 2, Lower 48) -- minimum income for ACA subsidy in non-Medicaid expansion states (see reference **).
$23,850* - 12% marginal tax bracket for ordinary income
$28,207 -- 138% of FPL (Household of 2, Lower 48) -- minimum income for ACA subsidy in Medicaid expansion states (see reference**).
$46,800 -- Maximum two people collecting Social Security prior to FRA can earn ($23,400 each) in W-2 income before Social Security is reduced
$47,501 – Savers Credit drops from 50% to 20%
$51,001 – Savers Credit drops from 20% to 10%
$79,001 – Savers Credit eliminated
$81,760 - 400% FPL -- ACA subsidy reduced to the point where premium can be 8.5 % of income (Household of two, Lower 48)(note that ACA subsidy levels are based on the prior year’s poverty levels)
$96,701* - Long term capital gains taxed at 15%
$96,951 * - 22% marginal tax bracket for ordinary income.
$126,001 - Begin limiting traditional IRA deduction amounts (if you have a retirement plan at work)
$146,001 - No traditional IRA deductions allowed (if you have a retirement plan at work)
$160,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$170,001 - Student loan interest deduction (up to $2500) phaseout begins
$180,001 - AOTC/LLC are eliminated
$200,001 - Student loan interest deduction ends
$206,701* - 24% tax bracket
$212,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2023 income)
$236,001 - Begin limiting Roth contribution amounts
$246,001 - No Roth contributions allowed (consider backdoor Roth)
$250,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$250,001 - WAGE/SELF EMPLOYMENT INCOME - Additional 0.9% Medicare tax.
$266,001 - IRMAA level 2 surcharge
$300,000 - Termination of electric vehicle purchase tax credits
$334,001 - IRMAA level 3
$383,900 - Begin phaseout of Qualified Business Income (QBI) deduction
$394,601* - 32% tax bracket
$400,001 - IRMAA level 4
$483,900 - QBI deduction eliminated.
$501,051* - 35% tax bracket
$600,051* - 20% long term capital gains rate
$751,601* - 37% tax bracket
$750,001 – IRMAA level 5
Income level/effect (as of 1/1/2025) This is for Single Filers vv. Numbers for Married Filing Jointly are listed separately above ^^.
$11,926* - 12% marginal tax bracket for ordinary income
$15,060 -- 100% of FPL (Household of 1, Lower 48) -- minimum income for ACA subsidy in non-Medicaid expansion states (see reference**).
$20,783 -- 138% of FPL (Household of 1, Lower 48) -- minimum income for ACA subsidy in Medicaid expansion states (see reference**).
$23,400 - Maximum a single person collecting Social Security prior to FRA can earn in W-2 income before Social Security is reduced
$23,751 – Savers Credit drops from 50% to 20%
$25,501– Savers Credit drops from 20% to 10%
$39,501 – Savers Credit eliminated
$48,351* - Long term capital gains taxed at 15%
$48,476* - 22% marginal tax bracket for ordinary income.
$60,240 - 400% FPL -- ACA subsidy reduced to the point where premium can be 8.5% of income (household of one, Lower 48)
$79,001 - Begin limiting traditional IRA deduction amounts. (if you have a retirement plan at work)
$85,001 - Student loan interest deduction (up to $2500) phaseout begins
$80,001 - Begin phaseout of American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) for college costs (note that this is not indexed for inflation)
$89,001 - No traditional IRA deductions allowed. (if you have a retirement plan at work)
$90,001 - AOTC/LLC are eliminated
$100,000 - Student loan interest deduction ends.
$103,351* - 24% tax bracket
$106,001 - IRMAA Medicare surcharge begins (based on income two years prior. i.e. 2023 income)
$133,001- IRMAA level 2 surcharge
$150,001 - Begin limiting Roth contribution amounts
$150,000 - Termination of electric vehicle purchase tax credits
$165,001 - No Roth contributions allowed (consider backdoor Roth)
$167,001 - IRMAA level 3 surcharge.
$191,950 - Begin phaseout of Qualified Business Income (QBI) deduction
$197,301* - 32% tax bracket
$200,001 - IRMAA level 4
$200,001 - NIIT 3.8% surcharge (note this is not indexed for inflation)
$200,001 - WAGE/SELF EMPLOYMENT INCOME - Additional 0.9% Medicare tax
$241,950 - QBI deduction eliminated.
$250,526* - 35% tax bracket
$533,401* - 20% long term capital gains rate
$500,001 - IRMAA level 5
$626,351* - 37% tax bracket
References:
IRS releases tax inflation adjustments for tax year 2025 | Internal Revenue Service
https://www.irs.gov/pub/irs-drop/rp-24-40.pdf
2025 Medicare Parts A & B Premiums and Deductibles | CMS
401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000 | Internal Revenue Service
https://www.nerdwallet.com/article/taxes/can-you-take-the-savers-credit#:~:text=2025%20saver's%20credit%20limits%20(taxes,All%20other%20filing%20statuses%3A%20%2439%2C500
https://www.eitc.irs.gov/other-refu...e-education-credits/compare-education-credits
Questions and Answers on the Net Investment Income Tax | Internal Revenue Service
Explaining Health Care Reform: Questions About Health Insurance Subsidies | KFF
**https://www.kff.org/medicaid/issue-...medicaid-expansion-decisions-interactive-map/ (Medicaid expansion map. These could change. Research it.)
2024 Poverty Guidelines Computations
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
Topic no. 751, Social Security and Medicare withholding rates | Internal Revenue Service
https://www.irs.gov/pub/irs-pdf/f8959.pdf
https://www.ssa.gov/news/press/factsheets/colafacts2025.pdf
Qualified Business Income Deduction | Internal Revenue Service
The qualified business income (QBI) deduction allows you to deduct up to 20 percent of your QBI. Learn more.
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